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Hawaii's Interisland Air War - Chapter 2

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  • Hawaii's Interisland Air War - Chapter 2

    $19 Fares Give Go! Record Sales

    Go!, which shook up the interisland market again on Friday by lowering its one-way airfares from $28 to $19, said yesterday that the first day of sales generated nearly 10,000 bookings -- about five times its normal level and a single-day record since go! started flying on June 9.

    Hawaiian Airlines, which matched the $19 fare, wouldn't disclose any specifics but noted that "our phones have been busy." Aloha Airlines declined to comment on its booking activity.
    Yes, people love low interisland air fares. My friends from Hilo are coming to Honolulu next month to watch their kid's rock band play at some concert. The probably would not do that if the fare were $79.

    Read the quoted article. There is an airline called Ryanair that gives away seats. Sheesh.... I'd go back to the Big Island every weekend if there were free seats.
    I'm still here. Are you?

  • #2
    Re: Are You GO for $39?

    Go!s recent agreement with Mokulele Airlines (under the banner of go! Express) to provide service to smaller island airports is putting pressure on Island Air, which quietly had been growing while the battle between HA/AQ and go! was starting up.

    There were 2 related stories in the local news today, one about the go!/Mokulele Air service (Mokulele is owned now by a former Alaska Air baggage handler who got laid off when Alaska outsourced its ground services a few years ago) and one about Island Air postponing the delivery of larger jets and instead reverting back to a Dash-8 fleet.

    So now you have all 3 of the legacy carriers (plus possiby Pacific Wings--thnks for catching this, Mel) griping about the practices of Mesa/go! in the Hawai'i airspace.

    Miulang
    Last edited by Miulang; September 27, 2006, 01:11 PM.
    "Americans believe in three freedoms. Freedom of speech; freedom of religion; and the freedom to deny the other two to folks they don`t like.” --Mark Twain

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    • #3
      Re: Are You GO for $39?

      Originally posted by Miulang
      ...one about Island Air postponing the delivery of larger jets and instead reverting back to a Dash-8 fleet.

      So now you have all 3 of the legacy carriers (plus possiby Pacific Air) griping about the practices of Mesa/go! in the Hawai'i airspace.

      A couple of corrections to the previous post:

      1. Island Air is getting rid of its one Q400 turboprop aircraft. They are not jets. They had 2 more Q400's on order. The papers got it wrong.

      2. I would think the "Pacific Air" is probably "Pacific Wings", the feisty little company out of Maui flying Cessna Grand Caravan aircraft to a number of smaller island airports. The Grand Caravan is the same aircraft Mokulele is upgrading their fleet to as they become a Go! partner.
      Last edited by mel; September 27, 2006, 01:13 PM. Reason: add photo link
      I'm still here. Are you?

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      • #4
        "Don't blame go!" says JO

        Jonathan Ornstein, the irascible CEO of Mesa/go!, says don't blame go! if one of the legacy carriers goes out of business: "it'll be by suicide" he says, because neither HA nor AQ fixed their pricing structure when they came out of bankruptcy.

        What Ornstein would like to do is eventually have go! be more like highly profitable RyanAir, which offers free flights while making money off vacation packages that are booked via their website (for which they get commissions, which is how they make their money). HA and AQ both have vacation packages for sale on their websites, but they're pretty limited in their offerings. Ornstein thinks the interisland market is a prime target for this kind of travel. I wonder, though: when most locals travel to other islands, isn't it to visit ohana, and don't they usually stay with family or friends? Or would they prefer to fly for free and pay for a vacation package?

        Miulang
        "Americans believe in three freedoms. Freedom of speech; freedom of religion; and the freedom to deny the other two to folks they don`t like.” --Mark Twain

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        • #5
          Re: "Don't blame go!" says JO

          Originally posted by Miulang
          Jonathan Ornstein, the irascible CEO of Mesa/go!, says don't blame go! if one of the legacy carriers goes out of business: "it'll be by suicide" he says, because neither HA nor AQ fixed their pricing structure when they came out of bankruptcy.

          What Ornstein would like to do is eventually have go! be more like highly profitable RyanAir, which offers free flights while making money off vacation packages that are booked via their website (for which they get commissions, which is how they make their money). HA and AQ both have vacation packages for sale on their websites, but they're pretty limited in their offerings. Ornstein thinks the interisland market is a prime target for this kind of travel. I wonder, though: when most locals travel to other islands, isn't it to visit ohana, and don't they usually stay with family or friends? Or would they prefer to fly for free and pay for a vacation package?

          Miulang

          You should link this to Jonathan Ornstein name. Or better yet this, Jonathan Ornstein

          Its so obvious what he is trying to do, now his insanity includes trying to re-write history.
          GO WARRIORS!!

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          • #6
            Re: Are You GO for $39?

            link to article

            Federal Bankruptcy Judge Robert Faris today rejected a request by Hawaiian Airlines to bar low-cost carrier go! from operating in Hawai'i for a year.
            Check out my blog on Kona issues :
            The Kona Blog

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            • #7
              Re: Are You GO for $39?

              That case was a waste of time. Is Hawaiian also sustaining it's legal challenge to go!'s use of the phrase "Hawaiian Airline"?

              If they weren't spending so much on lawyers, they'd probably be able to stay out of bankruptcy longer, and, you know, actually compete in the marketplace.

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              • #8
                Re: Are You GO for $39?

                John Ornstein was on the Rick Hamada radio show this morning. Go is here to stay.
                I'm still here. Are you?

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                • #9
                  Re: Are You GO for $39?

                  In my view, Go! has won this battle. But considering Judge Farias found compelling evidence that Go! breached confidentiality agreement with Hawaiian Airlines and has a desire to force Aloha Airline's exit from the inter island market,I'm not so sure Go! will win the war. As Hawaiian can seek monetary damages for Go!'s breach of the confidentiality agreement and a permanent injunction against GO! from operating in Hawaii as a part of any final judgment.
                  Check out my blog on Kona issues :
                  The Kona Blog

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                  • #10
                    Re: Are You GO for $39?

                    If we are to believe the doomsayers everyone who wants to travel to the neighbor islands better do it now while the market still has 3 interisland air carriers. After one goes or dies, it is back up to $128 low one way fares to Kona and no one will want to fly... to see tutu... see sisters.... auntys... uncles... mother... father often. That will be a sad day for consumers.
                    I'm still here. Are you?

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                    • #11
                      Re: Are You GO for $39?

                      I agree with you Mel. But taking into account how Judge Farias ruled, like I said,
                      Go! won this battle, but it may lose the war.
                      Check out my blog on Kona issues :
                      The Kona Blog

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                      • #12
                        Re: Are You GO for $39?

                        Originally posted by Konaguy View Post
                        I agree with you Mel. But taking into account how Judge Farias ruled, like I said,
                        Go! won this battle, but it may lose the war.
                        With that breach in confidentiality, I figure HA will settle for an amount approaching the monetary equivalent of one year of the 5 years Ornstein crowed go! could fly without making a profit.

                        Miulang
                        "Americans believe in three freedoms. Freedom of speech; freedom of religion; and the freedom to deny the other two to folks they don`t like.” --Mark Twain

                        Comment


                        • #13
                          Re: Are You GO for $39?

                          We'll see how the legal time clock rolls on this one. One thing about our justice system, it often moves slow... so Go will still have time to keep fares low.

                          Historically both of our incumbent major interisland airlines have hated competition, especially if it is a new kid in town... another airline and ocean competition.
                          Last edited by mel; October 7, 2006, 07:26 PM.
                          I'm still here. Are you?

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                          • #14
                            Re: Are You GO for $39?

                            More shibai from www.iflygo.com

                            Mesa Airlines' /K I L L K I L L K I L L --
                            go!/ press release, the whole story.


                            the Star Bulletin ran a poll asking the question;

                            "Will the entrance of Mesa Air Group's go! airline in the Hawaii market be good in the long run?"

                            ...We had FIVE different e-mails from four different Mesa executives, asking their employees to astroturf the poll. (Astroturf efforts are opposite of grassroots efforts).

                            Mesa was winning the poll by almost 2 to 1 at some times, then the poll closed. The Star was alerted to the presence of the five e-mails and when the poll closed, Mesa lost almost 3000 votes.

                            Well nobody at Mesa bothered to check up on this. A press release announcing that go! had won the poll, was posted all over Yahoo! and the PR newswire TWO DAYS LATER on Sunday.

                            I think it is safe to say that MESA AIRLINES SCREWED THEMSELVES ROYALLY THIS TIME. They have nobody else to blame but themselves.

                            To top it all off, after the press release was posted, Mesa rushed to get it off Yahoo! and posted this.

                            Press Release Source: go!
                            /K I L L K I L L K I L L -- go!/
                            Sunday October 1, 8:23 am ET


                            We are advised by go! that journalists and other readers should disregard the news release, go! Extends $19* HERO Fare, issued earlier today over PR Newswire, as it contained some erroneous information.

                            ...Thousands of people read the initial press release and we have the original copy in its entirety proving how important it was to Mesa that they manipulate this poll in order to continue decieving the public in Hawaii.

                            go! Extends $19* HERO Fare

                            HONOLULU, Oct. 1 /PRNewswire/ -- go! the interisland Hawaii division of Mesa Air Group Inc.,(Nasdaq: MESA)


                            "the people of Hawaii have enthusiastically supported our commitment to offering truly affordable interisland travel. The recent Star Bulletin readers' poll clearly demonstrates that people firmly support go!'s mission to offer the lowest fares which enable them to visit friends and family," said Joe Bock, Chief Marketing Officer for go!.

                            "The Star Bulletin readers' poll confirms what our customers have been telling us every day since we introduced truly affordable travel to the people of Hawaii," said Mesa Air Group Chairman & CEO, Jonathan Ornstein... We are delighted with this latest vote of support," Ornstein said.


                            Mesa got caught cheating AGAIN. Hana 'ino NO MORE SHIBAI!
                            GO WARRIORS!!

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                            • #15
                              Re: Are You GO for $39?

                              A company invoked in an online poll sent out e-mail begging for votes? How shocking! I'm sure Hawaiian and Aloha would never do such a thing!

                              The fact that they wrote a whole press release based on the results is pretty funny. The fact that the goof inspired the above rant is a little less funny.

                              New carrier go! fills two-thirds of its seats
                              Go!, the new interisland carrier started by Phoenix-based Mesa Air Group Inc., filled two-thirds of the available seats on its interisland flights in September, the company reported yesterday. Although that was an increase from 64.5 percent in August, it was still down from about 74 percent during July, which was the airline's first full month of operation.

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